Financial Capability in Schools Building Financial Futures 3  Thursday 7 th  February 2008 Pam Eccles Regional Director Ka...
Aims of today’s session … <ul><li>an introduction to  pfeg  (the Personal Finance Education Group) </li></ul><ul><li>an ov...
pfeg’s mission <ul><li>to ensure that all school leavers are equipped with the knowledge, confidence and skills in financi...
Key points about pfeg <ul><li>pfeg  is a registered charity – our independence and integrity are important </li></ul><ul><...
pfeg values    <ul><li>Inclusive </li></ul><ul><li>Importance of financial acumen </li></ul><ul><li>Recognition of pressur...
<ul><li>The £100 Challenge </li></ul>What would you do?
<ul><li>Buy a case of wine </li></ul><ul><li>Do the weekly shop </li></ul><ul><li>Put it in savings account </li></ul><ul>...
<ul><li>Instant Gratification </li></ul><ul><ul><li>Buy a case of wine </li></ul></ul><ul><ul><li>Have a night out </li></...
The need for financial education <ul><li>FSA baseline survey –  main themes: </li></ul><ul><ul><li>Large numbers not plann...
In a recent survey … of people find money the hardest thing to talk about with  their partners? of all people, think an IS...
A recent FSA report highlighted: <ul><li>29% of 16-24 year olds said they would not know how to prepare and manage a weekl...
<ul><li>“ I didn’t realise that banks charged you money when you borrowed from them … </li></ul>and I think it’s really sn...
What is financial capability? <ul><li>Attitudes </li></ul><ul><li>Skills and competence </li></ul><ul><li>Knowledge and un...
What is financial capability? <ul><li>Attitudes </li></ul><ul><li>taking personal responsibility for financial decisions; ...
What is financial capability? <ul><li>Skills and competence   </li></ul><ul><li>day-to day money management  </li></ul><ul...
<ul><li>Knowledge and understanding   </li></ul><ul><li>knowing about basic financial services, e.g. savings accounts, deb...
The new structure …… Personal wellbeing supports Every Child Matters   outcomes: Economic wellbeing supports Every Child M...
<ul><li>Economic Well-being is concerned with </li></ul><ul><li>equipping pupils with the knowledge, skills and attributes...
<ul><li>Examples: </li></ul><ul><li>Understanding different ways of paying for clothes </li></ul><ul><li>Understanding wag...
Other subjects and courses <ul><li>Financial capability can also be incorporated into core subjects: </li></ul><ul><li>Mat...
Other subjects and courses <ul><li>and into subjects and courses, which are usually optional from 14 onwards, for example:...
Personal Finance Education at Post-16 <ul><li>Preparing to leave home </li></ul><ul><li>- loans, grants, bursaries, fees <...
Supporting teachers and school leaders   <ul><li>Termly newsletters </li></ul><ul><li>Comprehensive website  www.pfeg.org ...
Learning Money Matters <ul><li>5 year initiative for English secondary schools to create a step change in levels of financ...
<ul><li>Help with: </li></ul><ul><li>Developing a coherent scheme for personal finance education across the curriculum </l...
Other projects <ul><li>What Money Means </li></ul><ul><li>Financial Sector Volunteers </li></ul>
www.pfeg.org
www.pfeg.org
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Financial Capability in Scools.ppt

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  • Part of our mission at pfeg is to establish financial capability as an important life skill for everyone – a key to helping young people make the best of their life chances in today’s fast-changing world. STARTER ACTIVITY £100 investment The need to make informed choices The need to look beyond the surface The need to consider the bigger picture
  • The complexities of living with money in the 21C … SEE ADDITIONAL NOTES ACTIVITY……Money then, earning and spending, and money now, earning and spending.
  • Young people (under 30): Graduates leaving university this year had average debts of £13,252, .62% of graduates leave university with debts of over £10,000.   Sixth-formers heading for college this year expect to leave their courses with debts of nearly £15,000.   Recent research shows that budgeting is the last thing on many students’ minds as the vast majority (80%) of 16-24 year olds admit they don’t keep track of their finances. Also, despite the likelihood of being on a tight budget, 1 in 5 doesn’t know within £100 what their financial state might be.    
  • Financial Capability in Scools.ppt

    1. 1. Financial Capability in Schools Building Financial Futures 3 Thursday 7 th February 2008 Pam Eccles Regional Director Karen Fuller Education Consultant
    2. 2. Aims of today’s session … <ul><li>an introduction to pfeg (the Personal Finance Education Group) </li></ul><ul><li>an overview of personal finance education in schools </li></ul><ul><li>Information on resources </li></ul>
    3. 3. pfeg’s mission <ul><li>to ensure that all school leavers are equipped with the knowledge, confidence and skills in financial matters to allow them to participate fully in society </li></ul>
    4. 4. Key points about pfeg <ul><li>pfeg is a registered charity – our independence and integrity are important </li></ul><ul><li>By supporting teachers, pfeg aims to achieve its mission of empowering and equipping young people to manage the financial complexities of adult life </li></ul><ul><li>pfeg does not have all the answers and welcomes working alongside teachers in finding the solutions </li></ul>
    5. 5. pfeg values   <ul><li>Inclusive </li></ul><ul><li>Importance of financial acumen </li></ul><ul><li>Recognition of pressures under which schools and teachers work </li></ul><ul><li>Partnership approach </li></ul>
    6. 6. <ul><li>The £100 Challenge </li></ul>What would you do?
    7. 7. <ul><li>Buy a case of wine </li></ul><ul><li>Do the weekly shop </li></ul><ul><li>Put it in savings account </li></ul><ul><li>Pay off some debt </li></ul><ul><li>Give it to charity </li></ul><ul><li>Have a night out </li></ul><ul><li>Invest in a pension </li></ul>
    8. 8. <ul><li>Instant Gratification </li></ul><ul><ul><li>Buy a case of wine </li></ul></ul><ul><ul><li>Have a night out </li></ul></ul><ul><li>Practicality </li></ul><ul><ul><li>Do the weekly shop </li></ul></ul><ul><ul><li>Pay off some debt </li></ul></ul><ul><li>Long term investment </li></ul><ul><ul><li>Put it in savings account </li></ul></ul><ul><ul><li>Invest in a pension </li></ul></ul>Give it to charity
    9. 9. The need for financial education <ul><li>FSA baseline survey – main themes: </li></ul><ul><ul><li>Large numbers not planning ahead </li></ul></ul><ul><ul><li>Over-indebtedness </li></ul></ul><ul><ul><li>Poor product choice and exposure to risk </li></ul></ul><ul><ul><li>Under 40’s typically less financially capable </li></ul></ul><ul><ul><li>Start at school </li></ul></ul>
    10. 10. In a recent survey … of people find money the hardest thing to talk about with their partners? of all people, think an ISA is an i-pod accessory? of the 16-24 age group do not keep track of their finances? of partners lie about how much they spend on credit cards? of British teenagers worry about their money and spending habits? What percentage … 74 15 80 32 90 Source – www.creditaction.org.uk
    11. 11. A recent FSA report highlighted: <ul><li>29% of 16-24 year olds said they would not know how to prepare and manage a weekly budget; </li></ul><ul><li>19% of 22-24 year olds have short-term debts over £5,000; </li></ul><ul><li>One in five students dropped out of courses; Of undergraduates who considered dropping out financial difficulty was a strong factor for 34.4%; </li></ul><ul><li>94% of 16 year olds believe it is important to know how to manage money; only 53% have been taught how to </li></ul>
    12. 12. <ul><li>“ I didn’t realise that banks charged you money when you borrowed from them … </li></ul>and I think it’s really sneaky …”
    13. 13. What is financial capability? <ul><li>Attitudes </li></ul><ul><li>Skills and competence </li></ul><ul><li>Knowledge and understanding </li></ul>
    14. 14. What is financial capability? <ul><li>Attitudes </li></ul><ul><li>taking personal responsibility for financial decisions; </li></ul><ul><li>wanting to seek advice and gather information on available choices </li></ul><ul><li>evaluating advice, product advertising and other information </li></ul><ul><li>questioning how far to participate in financial products and services </li></ul><ul><li>recognising the importance of ‘the bottom line’ </li></ul>
    15. 15. What is financial capability? <ul><li>Skills and competence </li></ul><ul><li>day-to day money management </li></ul><ul><li>thinking ahead about financial needs in the future </li></ul><ul><li>applying knowledge and understanding about money in different situations </li></ul><ul><li>being able to plan and budget and match this to actual spend </li></ul><ul><li>using money and financial skills to make money </li></ul>
    16. 16. <ul><li>Knowledge and understanding </li></ul><ul><li>knowing about basic financial services, e.g. savings accounts, debit and credit cards </li></ul><ul><li>knowing when and how I might need them, e.g. student loans and mortgages </li></ul><ul><li>understanding broadly how my finances fit into the economy as a whole </li></ul><ul><li>understanding the concept of money </li></ul>What is financial capability?
    17. 17. The new structure …… Personal wellbeing supports Every Child Matters outcomes: Economic wellbeing supports Every Child Matters outcomes: Be Healthy Stay Safe Enjoy and Achieve Make a Positive Contribution Economic wellbeing Enjoy and Achieve Make a Positive Contribution PSHE: Personal wellbeing PSHE: Economic wellbeing and financial capability www.qca.org.uk
    18. 18. <ul><li>Economic Well-being is concerned with </li></ul><ul><li>equipping pupils with the knowledge, skills and attributes to make the most of rapidly changing opportunities in learning and work. </li></ul><ul><li>learning how to make reasonable risk/reward assessments </li></ul><ul><li>developing their ability to informed and critical consumers of financial services and to manage their finances effectively </li></ul><ul><li>Economic Well-being encompasses </li></ul><ul><li>Enterprise </li></ul><ul><li>Financial Capability </li></ul>
    19. 19. <ul><li>Examples: </li></ul><ul><li>Understanding different ways of paying for clothes </li></ul><ul><li>Understanding wages and salaries </li></ul><ul><li>Writing a weekly, monthly or annual personal budget </li></ul><ul><li>Deciding if I need a credit card – or a mobile phone – or a pension – and which one? </li></ul><ul><li>Understanding savings and interest rates </li></ul><ul><li>Considering future purchases – how do I buy a car? </li></ul><ul><li>How much of a risk taker am I? </li></ul>PSHE: Economic wellbeing and financial capability
    20. 20. Other subjects and courses <ul><li>Financial capability can also be incorporated into core subjects: </li></ul><ul><li>Mathematics – calculating types of interest on savings; percentages of spending on personal or national priorities; calculating likely turnover and profit in a business plan </li></ul><ul><li>English – the role of money in literature; writing letters e.g. to the bank, or as a business </li></ul><ul><li>ICT – spreadsheets for personal or business accounting; use of the Internet for research; use of email e.g. to get insurance quotations </li></ul>
    21. 21. Other subjects and courses <ul><li>and into subjects and courses, which are usually optional from 14 onwards, for example: </li></ul><ul><li>Sources of start-up capital in Business Studies </li></ul><ul><li>Globalisation in Geography </li></ul><ul><li>Costing products in Design and technology </li></ul><ul><li>The origins of capitalism in History </li></ul><ul><li>Values and attitudes to money in different cultures in RE </li></ul><ul><li>An essential element in all vocational courses ? </li></ul><ul><li>And many others…… </li></ul>
    22. 22. Personal Finance Education at Post-16 <ul><li>Preparing to leave home </li></ul><ul><li>- loans, grants, bursaries, fees </li></ul><ul><li>Leaving home </li></ul><ul><li>- living costs, advantages/disadvantages </li></ul><ul><li>Later in life </li></ul><ul><li>- pensions, debt issues </li></ul>
    23. 23. Supporting teachers and school leaders <ul><li>Termly newsletters </li></ul><ul><li>Comprehensive website www.pfeg.org </li></ul><ul><li>Classroom resources and the Quality Mark </li></ul><ul><li>Telephone support </li></ul><ul><li>Teacher training events and conferences </li></ul><ul><li>Support from trained and certificated school consultants </li></ul><ul><li>Innovative projects </li></ul>
    24. 24. Learning Money Matters <ul><li>5 year initiative for English secondary schools to create a step change in levels of financial capability </li></ul><ul><li>FSA funded </li></ul><ul><li>5 regional offices </li></ul><ul><li>National and local campaign to raise the profile </li></ul><ul><li>Customised support to schools </li></ul>
    25. 25. <ul><li>Help with: </li></ul><ul><li>Developing a coherent scheme for personal finance education across the curriculum </li></ul><ul><li>Planning units of work and lessons </li></ul><ul><li>Accessing suitable and readily available teaching resources </li></ul><ul><li>Supporting in the classroom </li></ul><ul><li>Providing evaluation and ongoing planning </li></ul>Role of school consultants
    26. 26. Other projects <ul><li>What Money Means </li></ul><ul><li>Financial Sector Volunteers </li></ul>
    27. 27. www.pfeg.org
    28. 28. www.pfeg.org

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